Stock Market Technical Indicators & Analysis
The bounce came after an oversold position with the put/call ratio above 1. Now I need to wait to see if this is a dead cat bounce or something with legs. IBD still sees the uptrend under pressure and there were more new lows than highs on Monday. The devaluation of the yuan may make it harder for the Fed to raise rates in September. The index futures suggest a weak opening. I remain on the sidelines in cash in my trading accounts.
Whipsawed yet again! In cash with a small short position. GMI could flash a Sell signal if market weakness continues into early next week.
My GMI said to Buy on 7/30 and it was right! I wish I had had the courage to follow it earlier. I am adding long positions. Check out the daily chart of the QQQ. Note the GMI signals marked with red (sell) and green (buy) arrows.
None of my university students would have got stuck holding GMCR! As instructed by Stage Analysis, I never hold a stock trading below its declining 30 week average (solid red line). This weekly chart shows that GMCR first flashed a Stage IV sell signal in January.
